According to Shah, traditional media firms such as Gannett, Hearst and Condé Nast are approaching the shift in digital media differently, which is impacting what they are interested in by way of mergers and acquisitions.

“Each one has its own expertise. They are moving their historical assets [in each’s own way] to build an infrastructure to use technology that serves their customers,” Shah said.

Years ago during the dot-com craze, many retailers waited and watched and learned before acting. Gross said traditional media firms shouldn’t be ruled out since they’re now doing the same thing.

On the early-stage investing side, Cianciolo noted that two to three years ago not many chief marketing officers were all that familiar with online advertising, but that consumers are now forcing companies to know about content marketing.

“They now have to engage consumers with interesting content,” the early-stage venture capitalist said.

He cited a firm called Outbrain, a content-discovery platform, as an example of the new breed of companies that work with brands and agencies to reach a targeted audience through distribution on publishing sites via recommended links to increase traffic and revenue.

Stepanis said she’s noticed that in the last five years, particularly with the technological sophistication of cloud storage, it’s “cheaper” to start up a company with a lower investment level than before. She also pointed to “incubators and seed schools” that help the new firms raise less than $1 million and gain some traction, which “helps the funnel at the bottom part of the pyramid. It gives companies the ability to get out there.”

They also don’t have to be “home runs” in terms of investment returns, and many don’t need to formally raise Series A funding, she noted.

That also means mergers and acquisitions don’t necessarily translate into high-valuation deals. In M&A activity in 2012, “Ninety percent of the companies acquired were [purchased at] under $50 million,” according to Cianciolo.

Cianciolo said traditional media firms facing the build-or-buy question are really deciding whether to “change the DNA of the company and change direction [organically] or be acquisitive and change the DNA that way.” He concluded that so far it’s been the latter because acquisitions are far more palatable. “It’s difficult to cannibalize your own business,” he explained.

Shah told attendees, “Advertisers are less comfortable buying media without a measurable [return on investment].” While before it was OK to buy via a magazine budget, chief marketing officers today are becoming focused on online marketing. He explained that older media tools that “can’t show ROI see the media dollars going away.”

He likened it to the interplay between Mywebgrocer and the local newspapers, and how they tie in loyalty cards in the brick-and-mortar world to advertising dollars in measurable ways that can’t be had via the traditional approach of coupons and print circulars because those techniques can’t be tracked.

For Gross, the capital markets can present the greatest challenge for digital-media companies. That’s because investors need to look at how quickly the market is changing and whether valuations are based on sustainable trends.

Shah gave as an example the valuations for LinkedIn and Groupon, where the valuation of the former is steady due to three or four predictable revenue streams while the valuation for the latter comes down once investors understand the model is based solely on “repeat buying behavior and renewal rates.”

As for predictions, Cianciolo said some media firms depend on third-party consumer data, which could be “trouble in the next couple of years.” That’s because the ability to use that data could change over time, he cautioned.

Shah said that while some firms think it’s good that consumers watching a television show can buy an item of apparel that an actor or actress is wearing, he thinks the better vehicle is a “Shazam-type” option through which a user can find the item later on to buy so the experience of watching the show “doesn’t get interrupted.”

Latest Galleries

FREE ALERTS & NEWSLETTERS

Social Studies

In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)

@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)

The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)

@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)

How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion

“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)

@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)

Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion

For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion